2 weeks Ago By Simply Wall St.
In This Article: Key Insights Every investor in Edwards Lifesciences Corporation ( NYSE:EW ) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 88% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait. Let's delve deeper into each type of owner of Edwards Lifesciences, beginning with the chart below.
View our latest analysis for Edwards Lifesciences What Does The Institutional Ownership Tell Us About Edwards Lifesciences? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. Edwards Lifesciences already has institutions on the share registry.
Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does.
If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Edwards Lifesciences' earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Edwards Lifesciences. The company's largest shareholder is The Vanguard Group, Inc.
, with ownership of 12%. For context, the second largest shareholder holds about 9.3% of the shares outstanding, followed by an ownership of 5.
3% by the third-largest shareholder. After doing some more digging, we found that the top 19 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing.
There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future..
